Tomen Devices Corp. (2737) AI Stock Analysis

• Market Cap: ¥68.15B
• Dividend Yield: 3.18%
• Average Volume (3M): 21.98K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.27
• Revenue Growth: 16.05%
• EPS Growth: 3.58%
• Country: JP
• Employees: 187
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 516.01
• Shares Outstanding: 6,802,000
• 10 Day Avg. Volume: 16,690
• 30 Day Avg. Volume: 21,983
• PEG Ratio: 0.04
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 4.13
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: ¥13,484.00 ▲(15.25% Upside)

Tomen Devices Corp. receives a strong overall score, driven primarily by robust financial performance and positive technical indicators. The company's solid revenue growth, stable balance sheet, and efficient cash management underpin its financial health. Technical analysis indicates strong upward momentum, further supporting the stock's attractiveness. The reasonable valuation with a decent dividend yield adds to its appeal, although monitoring cash reserves and profit margins remains important for future stability.

Positive Factors

Revenue Growth

Strong revenue growth indicates increasing demand for Tomen Devices Corp.'s products, supporting long-term expansion and market presence.

Cash Flow Management

Improved cash flow management enhances operational flexibility and supports future investments in growth opportunities.

Balance Sheet Health

A low debt-to-equity ratio reflects a stable financial structure, providing resilience against economic fluctuations and supporting strategic initiatives.

Negative Factors

Profit Margin Concerns

While improving, the relatively low net profit margin suggests potential challenges in cost management and pricing power, impacting long-term profitability.

Cash Reserves Monitoring

Declining cash reserves could limit the company's ability to respond to unexpected expenses or invest in growth, affecting financial stability.

Margin Sustainability

Low EBIT and EBITDA margins indicate potential inefficiencies in operations, which could hinder long-term profitability and competitive positioning.

Tomen Devices Corp. Business Overview & Revenue Model

Company Description

Tomen Devices Corp. (2737) is a leading technology company specializing in the development and manufacturing of advanced electronic components and devices. Operating primarily in the electronics and telecommunications sectors, the company offers a diverse range of products including semiconductors, sensors, and communication equipment. Tomen Devices Corp. is committed to innovation, providing high-quality solutions that cater to various industries such as automotive, consumer electronics, and industrial automation.

How the Company Makes Money

The company generates revenue through multiple streams, primarily by selling its electronic components to manufacturers and distributors in various sectors. Key revenue streams include direct sales of semiconductors and sensors, as well as recurring revenue from maintenance and support services for its communication equipment. Additionally, Tomen Devices Corp. has established significant partnerships with leading technology firms, allowing it to leverage joint ventures and collaborative projects that enhance its market reach and product offerings. The continuous demand for advanced electronic solutions in emerging technologies, such as IoT and AI, further supports the company's growth and profitability.

Tomen Devices Corp. Financial Statement Overview

Summary

Tomen Devices Corp. demonstrates strong financial health with notable revenue and profit growth. The balance sheet is stable with controlled leverage and effective equity utilization. Cash flow improvements highlight efficient cash management, though monitoring cash reserves and enhancing profit margins could bolster stability.

Income Statement

Tomen Devices Corp. shows a robust performance in the semiconductor industry, highlighted by strong revenue growth of 13.75% from 2024 to 2025 and a healthy gross profit margin of 3.48% for 2025. The net profit margin improved significantly to 1.33% in 2025, reflecting enhanced profitability. EBIT margin at 2.41% and EBITDA margin at 2.26% indicate efficient core operations, although there is room for improvement. Overall, the company demonstrates positive growth and profitability trends.

Balance Sheet

The balance sheet is solid with a debt-to-equity ratio of 0.28 in 2025, indicating manageable leverage. The equity ratio of 43.54% suggests a stable financial structure with adequate shareholder equity. ROE improved to 11.26%, showcasing effective utilization of equity to generate profit. While the balance sheet shows stability, the decreasing cash reserves need monitoring for liquidity management.

Cash Flow

Cash flow analysis shows a substantial improvement, with free cash flow growing to 9,204 million yen in 2025. The operating cash flow to net income ratio of 1.65 indicates effective cash conversion from net income. However, the free cash flow to net income ratio of 1.65 underlines efficient cash management, but the company should continue focusing on consistent cash flow generation to support operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	421.17B	421.67B	370.68B	417.62B	462.82B	302.38B
Gross Profit	13.25B	14.70B	13.67B	16.14B	14.33B	7.86B
EBITDA	10.13B	9.51B	4.23B	8.15B	8.74B	4.69B
Net Income	5.32B	5.59B	2.10B	4.91B	6.38B	3.45B
Balance Sheet
Total Assets	158.74B	113.97B	130.21B	107.18B	116.99B	119.89B
Cash, Cash Equivalents and Short-Term Investments	6.10B	13.17B	20.86B	12.14B	8.22B	9.55B
Total Debt	48.77B	14.05B	29.66B	20.56B	9.50B	14.60B
Total Liabilities	110.76B	64.35B	84.70B	62.98B	77.63B	87.09B
Stockholders Equity	47.98B	49.62B	45.51B	43.21B	38.59B	32.17B
Cash Flow
Free Cash Flow	0.00	9.20B	4.15B	-5.25B	5.74B	-11.61B
Operating Cash Flow	0.00	9.21B	4.42B	-4.96B	5.90B	-11.58B
Investing Cash Flow	0.00	-21.00M	494.00M	-263.00M	-183.00M	-30.00M
Financing Cash Flow	0.00	-16.85B	2.90B	8.58B	-7.60B	11.30B

Tomen Devices Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11700.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2737, the sentiment is Positive. The current price of 11700 is above the 20-day moving average (MA) of 10279.50, above the 50-day MA of 8304.40, and above the 200-day MA of 6413.28, indicating a bullish trend. The MACD of 841.67 indicates Positive momentum. The RSI at 61.46 is Neutral, neither overbought nor oversold. The STOCH value of 15.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2737.

Tomen Devices Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7609	81 Outperform	¥49.01B	9.44	―	2.94%	10.24%	61.61%
2737	81 Outperform	¥68.15B	10.74	―	3.18%	16.05%	3.58%
6855	72 Outperform	¥44.47B	11.67	―	1.48%	36.31%	101.77%
7420	66 Neutral	¥27.24B	9.60	―	4.99%	3.32%	31.11%
7510	66 Neutral	¥33.58B	12.09	―	3.13%	7.09%	13.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6625	60 Neutral	¥38.56B	-217.53	―	4.23%	-44.89%	-97.21%